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- DOT buyers produced another successful defense of the $3.6 support with a 5% price increase
- Open Interest increased by over $4 million on the lower time frames, demonstrating near-term bullish strength
Dot [DOT] Bounced off the $3.6 support level for the second time in a row within a week. The bullish recovery of 5% from the support level of the past two days provided some breathing space for buyers.
How much are 1,10,100 DOTs worth today?
A previous technical analysis by AMBCrypto highlighted the intense selling pressure on DOT with the possibility that the altcoin is heading for a new price low. However, the recovery of prices from the support level has helped the bulls in the short term, although selling pressure still persisted.
Meanwhile, Bitcoin [BTC] continued trading above the $29.5k support level, with bulls bidding to take the king coin back to $30k.
Can DOT Buyers Seize the Initiative?
Source: DOT/USDT on Trading View
The continued bearish downtrend for DOT took the price to new lows in October. Still, buyers remained eager for a price reversal. With multiple support levels turning into resistance, buyers have a tall order to embark on a sustained bullish rally.
The first hurdle for bulls is around the $4 resistance level. A look south at the 12H timeframe showed that buyers at this level had built up a defense for a month before succumbing to selling pressure. This suggested that some buy orders could still exist at levels to provide buyers with the necessary momentum.
So, short-term buyers can expect a 5% gain from the current price level of $3.7 to the resistance level of $4. Nevertheless, a price rejection around the $4 level could keep DOT in a range on the lower timeframes.
Meanwhile, the CMF (Chaikin Money Flow) showed significant capital inflows, climbing above the zero limit. On the other hand, the RSI (Relative Strength Index) showed that there was still selling pressure. Despite the RSI rising sharply from the oversold zone, it remained below the neutral 50 level.
Open Interest showed that bulls had short-term momentum
Source: Coinalyse
Dates of Coinalyse at the underlined one-hour time frame, DOT desires an advance. The Open Interest (OI) has increased from $161.93 million to $166.12 million in the last 24 hours. This indicated an increase in long positions, which could mean further price appreciation.
Read Polkadots [DOT] Price forecast 2023-24
Similarly, spot CVD was also on the rise, highlighting the flow of demand for DOT. As such, a short-term bullish scenario remains possible despite the long-term bearish bias.